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Dow drops 1,000 points, and Japanese stocks suffer worst crash since 1987 as markets quake worldwide

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Dow drops 1,000 points, and Japanese stocks suffer worst crash since 1987 as markets quake worldwide
News

News

Dow drops 1,000 points, and Japanese stocks suffer worst crash since 1987 as markets quake worldwide

2024-08-06 06:13 Last Updated At:06:21

NEW YORK (AP) — A scary Monday that started with a plunge abroad reminiscent of 1987 ’s crash swept around the world and pummeled Wall Street with more steep losses, as fears worsened about a slowing U.S. economy.

The S&P 500 dropped 3% for its worst day in nearly two years. The Dow Jones Industrial Average reeled by 1,033 points, or 2.6%, while the Nasdaq composite slid 3.4% as Apple, Nvidia and other Big Tech companies that used to be the stars of the stock market continued to wilt.

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Trader James Conti on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

NEW YORK (AP) — A scary Monday that started with a plunge abroad reminiscent of 1987 ’s crash swept around the world and pummeled Wall Street with more steep losses, as fears worsened about a slowing U.S. economy.

Traders work on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

Traders work on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

Specialist Anthony Matesic works at his post on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

Specialist Anthony Matesic works at his post on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

A screen above the trading floor of the New York Stock Exchange shows the closing number for the Dow Jones industrial average, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

A screen above the trading floor of the New York Stock Exchange shows the closing number for the Dow Jones industrial average, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

Specialist Anthony Matesic works at his post on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

Specialist Anthony Matesic works at his post on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

Specialist Michael Gagliano, left, confers with a colleague on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024.(AP Photo/Richard Drew)

Specialist Michael Gagliano, left, confers with a colleague on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024.(AP Photo/Richard Drew)

Trader Leon Montana works on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

Trader Leon Montana works on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

A pair of traders work on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world. (AP Photo/Richard Drew)

A pair of traders work on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world. (AP Photo/Richard Drew)

Specialist Gregg Maloney works at his post on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world. (AP Photo/Richard Drew)

Specialist Gregg Maloney works at his post on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world. (AP Photo/Richard Drew)

Trader Robert Charmak works on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world. (AP Photo/Richard Drew)

Trader Robert Charmak works on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world. (AP Photo/Richard Drew)

Trader Michael Milano works on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

Trader Michael Milano works on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

NYSE President Lynn Martin watches trading on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world. (AP Photo/Richard Drew)

NYSE President Lynn Martin watches trading on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world. (AP Photo/Richard Drew)

A television screen on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024, headlines trading. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world. (AP Photo/Richard Drew)

A television screen on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024, headlines trading. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world. (AP Photo/Richard Drew)

Specialist Glenn Carell works at his post on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world. (AP Photo/Richard Drew)

Specialist Glenn Carell works at his post on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world. (AP Photo/Richard Drew)

Trader Gregory Rowe works on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024.(AP Photo/Richard Drew)

Trader Gregory Rowe works on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024.(AP Photo/Richard Drew)

Specialist Dilip Patel works at his post on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world.(AP Photo/Richard Drew)

Specialist Dilip Patel works at his post on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world.(AP Photo/Richard Drew)

FILE - Trader John Romolo works on the floor of the New York Stock Exchange, Aug. 2, 2024. Japan's benchmark Nikkei 225 stock index has lost 12.4% on Monday, August 5, 2024, in the latest bout of sell-offs that are jolting world markets. (AP Photo/Richard Drew, File)

FILE - Trader John Romolo works on the floor of the New York Stock Exchange, Aug. 2, 2024. Japan's benchmark Nikkei 225 stock index has lost 12.4% on Monday, August 5, 2024, in the latest bout of sell-offs that are jolting world markets. (AP Photo/Richard Drew, File)

FILE - People pass the New York Stock Exchange on July 30, 2024 in New York. Japan's benchmark Nikkei 225 stock index has lost 12.4% on Monday, August 5, 2024, in the latest bout of sell-offs that are jolting world markets. (AP Photo/Peter Morgan, File)

FILE - People pass the New York Stock Exchange on July 30, 2024 in New York. Japan's benchmark Nikkei 225 stock index has lost 12.4% on Monday, August 5, 2024, in the latest bout of sell-offs that are jolting world markets. (AP Photo/Peter Morgan, File)

A currency trader reacts near a screen showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 5, 2024. (AP Photo/Ahn Young-joon)

A currency trader reacts near a screen showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 5, 2024. (AP Photo/Ahn Young-joon)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI), top center left, and the foreign exchange rate between U.S. dollar and South Korean won, top center, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 5, 2024. (AP Photo/Ahn Young-joon)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI), top center left, and the foreign exchange rate between U.S. dollar and South Korean won, top center, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 5, 2024. (AP Photo/Ahn Young-joon)

A monitor shows the Nikkei 225 stock index in Tokyo, Monday, Aug. 5, 2024, indicating at one point, over 2,537 points of lowering. (Shohei Miyano/Kyodo News via AP)

A monitor shows the Nikkei 225 stock index in Tokyo, Monday, Aug. 5, 2024, indicating at one point, over 2,537 points of lowering. (Shohei Miyano/Kyodo News via AP)

A photographer takes a photo of a screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 5, 2024. (AP Photo/Ahn Young-joon)

A photographer takes a photo of a screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 5, 2024. (AP Photo/Ahn Young-joon)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI), top center, and the foreign exchange rate between U.S. dollar and South Korean won, top right, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 5, 2024. (AP Photo/Ahn Young-joon)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI), top center, and the foreign exchange rate between U.S. dollar and South Korean won, top right, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 5, 2024. (AP Photo/Ahn Young-joon)

A currency trader passes by a screen showing the Korea Composite Stock Price Index (KOSPI), top center left, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 5, 2024. (AP Photo/Ahn Young-joon)

A currency trader passes by a screen showing the Korea Composite Stock Price Index (KOSPI), top center left, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 5, 2024. (AP Photo/Ahn Young-joon)

A currency trader works near a screen showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 5, 2024. (AP Photo/Ahn Young-joon)

A currency trader works near a screen showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 5, 2024. (AP Photo/Ahn Young-joon)

A person walks in front of an electronic stock board showing Japan's Nikkei 225 index Friday, Aug. 2, 2024, in Tokyo. Shares in Europe and Asia tumbled Friday, with Japan’s Nikkei 225 index slumping 5.8% as investors panicked over signs of weakness in the U.S. economy. (Kyodo News via AP)

A person walks in front of an electronic stock board showing Japan's Nikkei 225 index Friday, Aug. 2, 2024, in Tokyo. Shares in Europe and Asia tumbled Friday, with Japan’s Nikkei 225 index slumping 5.8% as investors panicked over signs of weakness in the U.S. economy. (Kyodo News via AP)

FILE - People pass the New York Stock Exchange on July 31, 2024 in New York. World shares have tumbled on Friday, August 2, 2024, with Japan's Nikkei 225 index slumping 5.8% as investors panicked over signs of weakness in the U.S. economy.(AP Photo/Peter Morgan, File)

FILE - People pass the New York Stock Exchange on July 31, 2024 in New York. World shares have tumbled on Friday, August 2, 2024, with Japan's Nikkei 225 index slumping 5.8% as investors panicked over signs of weakness in the U.S. economy.(AP Photo/Peter Morgan, File)

A board above the trading floor shows the closing number for the Dow Jones industrial average, at the New York Stock Exchange, Friday, Aug. 2, 2024. Stocks tumbled Friday on worries the U.S. economy could be cracking under the weight of high interest rates meant to whip inflation.(AP Photo/Richard Drew)

A board above the trading floor shows the closing number for the Dow Jones industrial average, at the New York Stock Exchange, Friday, Aug. 2, 2024. Stocks tumbled Friday on worries the U.S. economy could be cracking under the weight of high interest rates meant to whip inflation.(AP Photo/Richard Drew)

The drops were the latest in a global sell-off that began last week. Japan’s Nikkei 225 helped begin Monday by plunging 12.4% for its worst day since the Black Monday crash of 1987.

It was the first chance for traders in Tokyo to react to Friday’s report showing U.S. employers slowed their hiring last month by much more than economists expected. That was the latest piece of data on the U.S. economy to come in weaker than expected, and it’s all raised fear the Federal Reserve has pressed the brakes on the U.S. economy by too much for too long through high interest rates in hopes of stifling inflation.

Professional investors cautioned that some technical factors could be amplifying the action in markets, and that the drops may be overdone, but the losses were still neck-snapping. South Korea’s Kospi index careened 8.8% lower, and bitcoin dropped below $54,000 from more than $61,000 on Friday.

Even gold, which has a reputation for offering safety during tumultuous times, slipped about 1%.

That’s in part because traders began wondering if the damage has been so severe that the Federal Reserve will have to cut interest rates in an emergency meeting, before its next scheduled decision on Sept. 18. The yield on the two-year Treasury, which closely tracks expectations for the Fed, briefly sank below 3.70% during the morning from 3.88% late Friday and from 5% in April. It later recovered and pulled back to 3.89%.

“The Fed could ride in on a white horse to save the day with a big rate cut, but the case for an inter-meeting cut seems flimsy,” said Brian Jacobsen, chief economist at Annex Wealth Management. “Those are usually reserved for emergencies, like COVID, and an unemployment rate of 4.3% doesn’t really seem like an emergency.”

Of course, the U.S. economy is still growing, the U.S. stock market is still up a healthy amount for the year and a recession is far from a certainty. The Fed has been clear about the tightrope it began walking when it started hiking rates sharply in March 2022: Being too aggressive would choke the economy, but going too soft would give inflation more oxygen and hurt everyone.

Goldman Sachs economist David Mericle sees a higher chance of a recession within the next 12 months following Friday’s jobs report. But he still sees only a 25% probability of that, up from 15%, in part “because the data look fine overall” and he does not “see major financial imbalances.”

Some of Wall Street’s recent declines may simply be air coming out of a stock market that romped to dozens of all-time highs this year, in part on a frenzy around artificial-intelligence technology. Critics have been saying for a while that the stock market looked expensive after prices rose faster than corporate profits.

“Markets tend to move higher like they’re climbing stairs, and they go down like they’re falling out a window,” according to JJ Kinahan, CEO of IG North America. He chalks much of the recent worries to euphoria around AI subsiding, with pressure rising on companies to show how AI is turning into profits, and “a market that was ahead of itself.”

The only way for stocks to look less expensive is either for prices to fall or for their profits to strengthen. Expectations are still high for the latter, with growth for S&P 500 profits this past quarter looking to be the strongest since 2021.

Professional investors also pointed to the Bank of Japan’s move last week to raise its main interest rate from nearly zero. Such a move helps boost the value of the Japanese yen, but it could also force traders to scramble out of deals where they borrowed money for virtually no cost in Japan and invested it elsewhere around the world.

Treasury yields also pared their losses Monday after a report said growth for U.S. services businesses was a touch stronger than expected. Growth was led by arts, entertainment and recreation businesses, along with accommodations and food services, according to the Institute for Supply Management.

Still, stocks of companies whose profits are most closely tied to the economy’s strength took sharp losses on the fears about a slowdown. The small companies in the Russell 2000 index dropped 3.3%, washing out what had been a revival for it and other beaten-down areas of the market.

Making things worse for Wall Street, Big Tech stocks tumbled as the market’s most popular trade for much of this year continued to unravel. Apple, Nvidia and a handful of other Big Tech stocks known as the “ Magnificent Seven ” had propelled the S&P 500 to record after record this year, even as high interest rates weighed down much of the rest of the stock market.

But Big Tech’s momentum turned last month on worries investors had taken their prices too high and expectations for future growth are becoming too difficult to meet. A set of underwhelming profit reports that began with updates from Tesla and Alphabet added to the pessimism and accelerated the declines.

Apple fell 4.8% Monday after Warren Buffett’s Berkshire Hathaway disclosed that it had slashed its ownership stake in the iPhone maker.

Nvidia, the chip company that’s become the poster child of Wall Street’s AI bonanza, fell even more, 6.4%. Analysts cut their profit forecasts over the weekend for the company after a report from The Information said Nvidia’s new AI chip is delayed. The recent selling has trimmed Nvidia’s gain for the year to nearly 103% from 170% in the middle of June.

Another Big Tech titan, Alphabet, fell 4.4% after a U.S. judge ruled Google’s search engine has been illegally exploiting its dominance to squash competition and stifle innovation.

All told, the S&P 500 fell 160.23 points to 5,186.33. The Dow sank 1,033.99 to 38,703.27, and the Nasdaq composite tumbled 576.08 to 16,200.08.

Worries outside corporate profits, interest rates and the economy are also weighing on the market. The Israel-Hamas war may be worsening, which beyond its human toll could cause sharp swings for the price of oil. That’s adding to broader worries about potential hotspots around the world, while upcoming U.S. elections could further scramble things.

Wall Street has been concerned about how policies coming out of November could impact markets, but the sharp swings for stock prices could affect the election itself.

The threat of a recession is likely to put Vice President Kamala Harris on the defensive. But slower growth could also further reduce inflation and force former President Donald Trump to pivot from his current focus on higher prices to outlining ways to revive the economy.

“It comes down to jobs,” said Quincy Krosby, chief global strategist for LPL Financial. Jobs drive spending by U.S. consumers, which in turn is the biggest part of the U.S. economy.

“When we get to election day, the unemployment rate is going to be extremely important.”

AP Business Writers Elaine Kurtenbach, Matt Ott, Christopher Rugaber and Damian J. Troise contributed.

Trader James Conti on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

Trader James Conti on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

Traders work on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

Traders work on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

Specialist Anthony Matesic works at his post on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

Specialist Anthony Matesic works at his post on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

A screen above the trading floor of the New York Stock Exchange shows the closing number for the Dow Jones industrial average, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

A screen above the trading floor of the New York Stock Exchange shows the closing number for the Dow Jones industrial average, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

Specialist Anthony Matesic works at his post on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

Specialist Anthony Matesic works at his post on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

Specialist Michael Gagliano, left, confers with a colleague on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024.(AP Photo/Richard Drew)

Specialist Michael Gagliano, left, confers with a colleague on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024.(AP Photo/Richard Drew)

Trader Leon Montana works on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

Trader Leon Montana works on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

A pair of traders work on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world. (AP Photo/Richard Drew)

A pair of traders work on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world. (AP Photo/Richard Drew)

Specialist Gregg Maloney works at his post on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world. (AP Photo/Richard Drew)

Specialist Gregg Maloney works at his post on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world. (AP Photo/Richard Drew)

Trader Robert Charmak works on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world. (AP Photo/Richard Drew)

Trader Robert Charmak works on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world. (AP Photo/Richard Drew)

Trader Michael Milano works on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

Trader Michael Milano works on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. (AP Photo/Richard Drew)

NYSE President Lynn Martin watches trading on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world. (AP Photo/Richard Drew)

NYSE President Lynn Martin watches trading on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world. (AP Photo/Richard Drew)

A television screen on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024, headlines trading. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world. (AP Photo/Richard Drew)

A television screen on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024, headlines trading. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world. (AP Photo/Richard Drew)

Specialist Glenn Carell works at his post on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world. (AP Photo/Richard Drew)

Specialist Glenn Carell works at his post on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world. (AP Photo/Richard Drew)

Trader Gregory Rowe works on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024.(AP Photo/Richard Drew)

Trader Gregory Rowe works on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024.(AP Photo/Richard Drew)

Specialist Dilip Patel works at his post on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world.(AP Photo/Richard Drew)

Specialist Dilip Patel works at his post on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. Nearly everything on Wall Street is tumbling as fear about a slowing U.S. economy worsens and sets off another sell-off for financial markets around the world.(AP Photo/Richard Drew)

FILE - Trader John Romolo works on the floor of the New York Stock Exchange, Aug. 2, 2024. Japan's benchmark Nikkei 225 stock index has lost 12.4% on Monday, August 5, 2024, in the latest bout of sell-offs that are jolting world markets. (AP Photo/Richard Drew, File)

FILE - Trader John Romolo works on the floor of the New York Stock Exchange, Aug. 2, 2024. Japan's benchmark Nikkei 225 stock index has lost 12.4% on Monday, August 5, 2024, in the latest bout of sell-offs that are jolting world markets. (AP Photo/Richard Drew, File)

FILE - People pass the New York Stock Exchange on July 30, 2024 in New York. Japan's benchmark Nikkei 225 stock index has lost 12.4% on Monday, August 5, 2024, in the latest bout of sell-offs that are jolting world markets. (AP Photo/Peter Morgan, File)

FILE - People pass the New York Stock Exchange on July 30, 2024 in New York. Japan's benchmark Nikkei 225 stock index has lost 12.4% on Monday, August 5, 2024, in the latest bout of sell-offs that are jolting world markets. (AP Photo/Peter Morgan, File)

A currency trader reacts near a screen showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 5, 2024. (AP Photo/Ahn Young-joon)

A currency trader reacts near a screen showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 5, 2024. (AP Photo/Ahn Young-joon)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI), top center left, and the foreign exchange rate between U.S. dollar and South Korean won, top center, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 5, 2024. (AP Photo/Ahn Young-joon)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI), top center left, and the foreign exchange rate between U.S. dollar and South Korean won, top center, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 5, 2024. (AP Photo/Ahn Young-joon)

A monitor shows the Nikkei 225 stock index in Tokyo, Monday, Aug. 5, 2024, indicating at one point, over 2,537 points of lowering. (Shohei Miyano/Kyodo News via AP)

A monitor shows the Nikkei 225 stock index in Tokyo, Monday, Aug. 5, 2024, indicating at one point, over 2,537 points of lowering. (Shohei Miyano/Kyodo News via AP)

A photographer takes a photo of a screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 5, 2024. (AP Photo/Ahn Young-joon)

A photographer takes a photo of a screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 5, 2024. (AP Photo/Ahn Young-joon)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI), top center, and the foreign exchange rate between U.S. dollar and South Korean won, top right, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 5, 2024. (AP Photo/Ahn Young-joon)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI), top center, and the foreign exchange rate between U.S. dollar and South Korean won, top right, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 5, 2024. (AP Photo/Ahn Young-joon)

A currency trader passes by a screen showing the Korea Composite Stock Price Index (KOSPI), top center left, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 5, 2024. (AP Photo/Ahn Young-joon)

A currency trader passes by a screen showing the Korea Composite Stock Price Index (KOSPI), top center left, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 5, 2024. (AP Photo/Ahn Young-joon)

A currency trader works near a screen showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 5, 2024. (AP Photo/Ahn Young-joon)

A currency trader works near a screen showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 5, 2024. (AP Photo/Ahn Young-joon)

A person walks in front of an electronic stock board showing Japan's Nikkei 225 index Friday, Aug. 2, 2024, in Tokyo. Shares in Europe and Asia tumbled Friday, with Japan’s Nikkei 225 index slumping 5.8% as investors panicked over signs of weakness in the U.S. economy. (Kyodo News via AP)

A person walks in front of an electronic stock board showing Japan's Nikkei 225 index Friday, Aug. 2, 2024, in Tokyo. Shares in Europe and Asia tumbled Friday, with Japan’s Nikkei 225 index slumping 5.8% as investors panicked over signs of weakness in the U.S. economy. (Kyodo News via AP)

FILE - People pass the New York Stock Exchange on July 31, 2024 in New York. World shares have tumbled on Friday, August 2, 2024, with Japan's Nikkei 225 index slumping 5.8% as investors panicked over signs of weakness in the U.S. economy.(AP Photo/Peter Morgan, File)

FILE - People pass the New York Stock Exchange on July 31, 2024 in New York. World shares have tumbled on Friday, August 2, 2024, with Japan's Nikkei 225 index slumping 5.8% as investors panicked over signs of weakness in the U.S. economy.(AP Photo/Peter Morgan, File)

A board above the trading floor shows the closing number for the Dow Jones industrial average, at the New York Stock Exchange, Friday, Aug. 2, 2024. Stocks tumbled Friday on worries the U.S. economy could be cracking under the weight of high interest rates meant to whip inflation.(AP Photo/Richard Drew)

A board above the trading floor shows the closing number for the Dow Jones industrial average, at the New York Stock Exchange, Friday, Aug. 2, 2024. Stocks tumbled Friday on worries the U.S. economy could be cracking under the weight of high interest rates meant to whip inflation.(AP Photo/Richard Drew)

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The Latest: Trump and Harris are set to debate in Philadelphia

2024-09-11 01:19 Last Updated At:01:20

Kamala Harris and Donald Trump are gearing up to take the stage for Tuesday night’s debate in Philadelphia, where they’ll fight to sway 2024 election voters on the biggest stage in U.S. politics.

The event, at 9 p.m. Eastern, will offer Americans their most detailed look at a campaign that’s dramatically changed since the last debate in June. In rapid fashion, President Joe Biden bowed out of the race after his disastrous performance, Trump survived an assassination attempt and bothsides chose their running mates.

Follow the AP’s Election 2024 coverage at: https://apnews.com/hub/election-2024.

Here’s the latest:

Donald Trump’s inner circle says Kamala Harris has plenty of weaknesses she’ll have to defend on the debate stage, from inflation under President Joe Biden to the more liberal positions she took in her own 2020 presidential campaign before tacking toward the center.

Some Republicans are worried the freewheeling former president may miss some opportunities to put Harris on the defensive.

“Some of the biggest concerns of the American people remain the border crisis, the economy and inflation,” said Marc Short, who led debate preparations for Trump’s vice president, Mike Pence, when he took Harris on in the the 2020 campaign.

“My advice would be to force real conversations on the border, economics and international affairs. And put her on the defensive on all the things she’s flip-flopped on,” Short said. “But I’m not sitting here with confidence that he’s going to be able to prosecute the case effectively.”

Short recalled how detailed Pence was in preparing for Harris, with days of “full dress rehearsals” against stand-ins who knew questions ahead of time and had prepared answers based on Harris’ positions and public statements. “That’s just not Trump’s style,” said Short. “You know, I would not anticipate a deeply substantive debate. But you never know.”

That’s according to a person familiar with his plans who wasn’t authorized to speak publicly.

The Republican former president, who’s from New York, is scheduled to visit the memorial site in lower Manhattan.

Biden and Harris are also set to visit as the president and vice president make stops at ground zero in New York for a ceremony at the National Sept. 11 Memorial plaza, the Flight 93 National Memorial near Shanksville, Pennsylvania, and at the Pentagon.

Trump is also set to visit the Pennsylvania site Wednesday but it wasn’t clear if he and Harris would come face-to-face on any of their stops as they mark the 23rd anniversary of the attacks the day after their debate.

— Michelle L. Price

Four years ago, Kamala Harris and Mike Pence met in the 2020 vice presidential debate in what was mostly a civil, substantive debate. But a tiny insect ended up stealing more of its fair share of the spotlight.

Marc Short, who led Pence’s debate prep, still shakes his head thinking about the fly that landed on Pence’s head during the debate, a stark image of the dark insect set against Pence’s white hair.

“On the actual substance you we were very pleased with Pence’s answers back and forth in that debate,” Short said. Unfortunately, he added, “a lot of the after coverage was focused on the fly.”

Indeed, it became an immediate social media sensation, made its way into the ubiquitous takeaway analysis pieces that every major news outlet produces and was part of NBC’s Saturday Night Live “Cold Open” skit days later.

The lesson, Short said, is that candidates, no matter how much they prepare, cannot always control the conversation coming out of a debate.

“She just needs to be herself, and she will be fine,” South Carolina Rep. James Clyburn told reporters at a White House celebration for the South Carolina Gamecocks, the 2024 NCAA women’s basketball champs.

Jaime Harrison, the Democratic National Committee chairman, said he was confident Harris will show herself to be more presidential than former President Donald Trump.

“Listen, I think if the vice president is herself, she’s going to be fantastic,” said Harrison, another South Carolinian who attended the White House ceremony. “She’s going to be presidential, and we know Donald Trump is going to do what Donald Trump does.”

If he wins in November, Trump, who’s 78, will be the oldest person ever elected to the presidency. And a new Pew Research Center poll finds that about half of voters think his age will hurt his candidacy. Only 3% of voters think his age will help him, and the rest say it won’t make a difference.

The results are the opposite for Harris, who at 59 is nearly two decades younger than her opponent. About half say her age will help her, while only 3% say it will hurt her.

With Harris as the Democratic candidate, Trump may have lost an advantage over President Joe Biden – the perception that he’s more mentally prepared for the job. About 6 in 10 voters say the phrase “mentally sharp” describes Harris very or fairly well, while about half say that about Trump. Back in July, when Biden was still his opponent, about 6 in 10 voters said Trump was “mentally sharp,” while only about one-quarter said the same of Biden.

Harris’s candidacy is historic – if elected, she’d be the first woman president, as well as the first Asian American and first Black woman president. Voters are more likely to think those identities will help her than hurt her at the ballot box this fall, according to a new poll from the Pew Research Center.

About 4 in 10 voters think Harris’s Asian and Black identity will help her in November, and a similar share think the same about her identity as a woman. They’re more likely to see her gender as a liability than her race: About 3 in 10 say the fact that Harris is a woman will hurt her in November, while about 3 in 10 say that about the fact that she is Asian and Black.

The voters who are most concerned that Harris’s race and gender will be a liability are her own supporters. About 4 in 10 Harris supporters, for instance, say the fact that Harris is a woman will hurt her with voters, compared to 16% of Trump supporters.

Former President Donald Trump and Vice President Kamala Harris will meet face-to-face for the first time in a highly-anticipated debate Tuesday night. The two presidential candidates describe the state of the country in starkly different terms. Trump often paints a dark picture centered around issues such as immigration and high inflation, while Harris focuses on optimism for the future, promising that “we’re not going back.”

The first debate of the 2024 election in June — at which President Joe Biden’s disastrous performance ultimately forced him from the race — featured multiple false and misleading claims from both candidates and it’s likely that Tuesday’s match-up will include much of the same.

▶ Read more about claims made by the candidates

And both of them plan to say why the Democrat would be better than Republican Donald Trump.

Anthony Scaramucci was briefly the Trump White House’s communications director, while Olivia Troye was a homeland security adviser to Vice President Mike Pence and was involved in Trump’s coronavirus task force. The Harris campaign said both will speak out against Trump before the debate starts.

In a form of political judo, the Harris campaign has been trying to use Trump’s former aides against him, trying to show that those who know him best see him as unfit to return to the White House.

This year’s presidential race is a genuine contest of ideas between Vice President Kamala Harris and former President Donald Trump — with clear differences on taxes, abortion, immigration, global alliances, climate change and democracy itself.

Since replacing President Joe Biden as the Democratic nominee, Harris has pledged to chart a new way forward even as she’s embraced many of his ideas. She wants middle class tax cuts, tax hikes on the wealthy and corporations, a restoration of abortion rights and a government that aggressively addresses climate change, among other stances.

Seeking a return to the White House, Trump wants to accomplish much of what he couldn’t do during a term that was sidetracked by the global pandemic. The Republican wants the extension and expansion of his 2017 tax cuts, a massive increase in tariffs, more support for fossil fuels and a greater concentration of government power in the White House.

The two candidates have spelled out their ideas in speeches, advertisements and other venues. Many of their proposals lack specifics, making it difficult to judge exactly how they would translate their intentions into law or pay for them.

▶ Read more about where the candidates stand on issues

With early voting fast approaching, the rhetoric by Republican presidential nominee Donald Trump has turned more ominous with a pledge to prosecute anyone who “cheats” in the election in the same way he believes they did in 2020, when he falsely claimed he won and attacked those who stood by their accurate vote tallies.

He also told a gathering of police officers last Friday that they should “watch for the voter fraud,” an apparent attempt to enlist law enforcement that would be legally dubious.

Trump has contended, without providing evidence, that he lost the 2020 election only because of cheating by Democrats, election officials and other, unspecified forces.

On Saturday, Trump promised that this year those who cheat “will be prosecuted to the fullest extent of the law” should he win in November. He said he was referencing everyone from election officials to attorneys, political staffers and donors.

▶ Read more about Trump’s rhetoric on the election

The debate between Vice President Kamala Harris and former President Donald Trump won’t have an audience, live microphones when candidates aren’t speaking, or written notes, according to rules ABC News, the host network, shared with both campaigns last month.

The parameters in place for the Tuesday night debate are essentially the same as they were for the June debate between Trump and President Joe Biden, a disastrous performance for the incumbent Democrat that fueled his exit from the campaign.

It's the only debate that’s been firmly scheduled and could be the only time voters see Harris and Trump go head to head before the November general election.

▶ Read more about the rules for the Trump-Harris debate

In this combination photo, Democratic vice presidential candidate Sen. Kamala Harris, D-Calif., speaks during a debate, Oct. 7, 2020, in Salt Lake City, left, and Republican presidential candidate former President Donald Trump speaks during a debate, June 27, 2024, in Atlanta. (AP Photo)

In this combination photo, Democratic vice presidential candidate Sen. Kamala Harris, D-Calif., speaks during a debate, Oct. 7, 2020, in Salt Lake City, left, and Republican presidential candidate former President Donald Trump speaks during a debate, June 27, 2024, in Atlanta. (AP Photo)

The motorcade of Democratic presidential nominee Vice President Kamala Harris passes a billboard in support of Republican presidential nominee former President Donald Trump Monday, Sept. 9, 2024, ahead of the presidential debate with Republican presidential nominee former President Donald Trump in Philadelphia. (AP Photo/Jacquelyn Martin)

The motorcade of Democratic presidential nominee Vice President Kamala Harris passes a billboard in support of Republican presidential nominee former President Donald Trump Monday, Sept. 9, 2024, ahead of the presidential debate with Republican presidential nominee former President Donald Trump in Philadelphia. (AP Photo/Jacquelyn Martin)

Democratic presidential nominee Vice President Kamala Harris arrives on Air Force Two at Atlantic Aviation Philadelphia, Monday, Sept. 9, 2024, near Philadelphia International Airport, ahead of the presidential debate with Republican presidential nominee former President Donald Trump. (AP Photo/Jacquelyn Martin)

Democratic presidential nominee Vice President Kamala Harris arrives on Air Force Two at Atlantic Aviation Philadelphia, Monday, Sept. 9, 2024, near Philadelphia International Airport, ahead of the presidential debate with Republican presidential nominee former President Donald Trump. (AP Photo/Jacquelyn Martin)

Signage at the media filing center ahead of tomorrow's presidential debate between Republican presidential candidate former President Donald Trump and Democratic presidential nominee Vice President Kamala Harris, Monday, Sept. 9, 2024, in Philadelphia. (AP Photo/Pablo Martinez Monsivais)

Signage at the media filing center ahead of tomorrow's presidential debate between Republican presidential candidate former President Donald Trump and Democratic presidential nominee Vice President Kamala Harris, Monday, Sept. 9, 2024, in Philadelphia. (AP Photo/Pablo Martinez Monsivais)

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